A week is a long time in lockdown

When writing last month’s article, I can honestly say that it was put together immersed in a cloud of uncertainty not seen since the early days of the credit crunch and one which nobody wants to experience again. Of course, the backdrop could not have been more different, and I don’t want to get too far ahead of myself, but in the subsequent weeks some much needed stability has emerged. Yes, it’s still far from easy for lenders, and the current amount of business being written pales into insignificance when compared to the month prior to lockdown. However, whether on social media or within the trade press, we are seeing stronger levels of positivity appear on a much more regular basis after an initial period which was filled with fear, anxiety and the unknown. Nobody has all the answers, but it’s amazing to see how resilient, innovative, and progressive many individuals are – both from a personal and business perspective.

Despite ongoing economic concerns and tragedies still happening on a daily basis, I can feel some cautious optimism returning to the housing and property markets, and this is largely driven by a lending community which is steadily getting to grips with the new, and hopefully short-term, trading conditions.

From a residential perspective, we are seeing the major lenders return to the market with 85% LTV deals after an understandable period of structural, policy and product realignment.

From a buy-to-let viewpoint, there has been a huge amount of activity going on behind the scenes to overcome restrictions around physical valuations and the bolstering of product offerings. The fact that we are seeing some lenders return to the market, product ranges being refreshed, the raising of LTVs and the implementation of AVMs displays the strength, durability and evolutionary nature of the buy-to-let sector.

As a mortgage club, these are the types of lenders we are looking to work with post-crisis and that’s why we are constantly reviewing our lending panel. One addition we have made in recent weeks is Newcastle Intermediaries as this is a lender which is still allowing remortgages up to 80% LTV, offers flexible criteria for the newly self-employed and has no maximum age restrictions for buy-to-let applications.

In the coming weeks, buy-to-let lenders will continue to adapt products, rates, criteria and policy in line with market conditions and it’s important that intermediaries have access to a range of products to suit a variety of customer needs, whether straightforward or more niche. So, keep your eye out for further product-related news across the buy-to-let sector and remember, specialist advice and support is still out there for you and your clients if, and when, you need it.